PRESS BRIEFING BY UNDER-SECRETARY-GENERAL FOR MANAGEMENT

PRESS BRIEFING BY UNDER-SECRETARY-GENERAL FOR MANAGEMENT

Recent reductions in services were not in contravention to the United Nations budget resolution, but rather, in fact, had been taken to comply with it, Under-Secretary-General for Management Joseph E. Connor told correspondents this afternoon at a Headquarters press briefing.

Addressing concerns about the measures, which were announced on 28 February in the Secretary-General's note verbale and Mr. Connor's information circular ST/IC/2002/13, he said last December the General Assembly, on the unanimous advice of its Fifth Committee (Administrative and Budgetary), had adopted a budget of $2.625 billion -- some $75 million below the Secretary-General's budget proposal.  When making that decision, the Assembly did not reduce or abolish programmes or the level of activities. 

Instead, he said, it made across-the-board "objects of expenditure" reductions and changed the vacancy rate to more closely track actual expenditures.  It was the responsibility of the Secretary-General to administer the budget within the level decided by the Assembly and to take the necessary measures to do so.

The Assembly was explicit as to where the reductions should be applied:  travel of staff (reduced by $2.8 million); contractual services ($6.4 million); general operating expenses ($19.7 million); supplies and materials ($1.4 million); furniture and equipment ($7.2 million); consultants and experts ($2 million); and information technology ($10 million).  With those specific reductions, no room was left for maneuver.  The Organization's approved budget was difficult to implement, since due to its imbalance between human resources and non-post provisions, as well as between programme and support areas, the impact of the mandated reductions was particularly severe. 

As a result, he continued, the choices facing the Secretariat required a big increase in productivity, a reduction in services, or overspending.  The latter was not an option, of course.  As for increases in productivity, during the last three budget cycles many increases had been achieved to cope with the stagnant budgetary level.  The production gains had already been directed towards servicing the Organization's expanded mandates.  In the current biennium, additional productivity increases were unlikely.  Therefore, the only option left was the reduction in services. 

In presenting his budget proposal, the Secretary-General had pointed out to the Fifth Committee that further budgetary constraints would "seriously compromise our ability to deliver the services expected from us", particularly with Member States imposing new mandates on the Organization.  Thus, it should not come as a surprise that, with the reductions made by the Assembly, it was impossible to accomplish everything in the budget and provide all the services anticipated, especially in view of the fact that those reductions were heavily tilted towards the area of services. 

Asked what services were being cut, Mr. Connor replied that, for example, no new furniture or workstations would be supplied.  Only the furniture that was beyond repair would be replaced.  Only the most essential renovations and electrical work would be provided.  Cleaning services would be reduced in frequency and scope.  Air conditioning and heating would be cut back after 5 p.m.

and during the weekends.  Telephone support for software applications would no longer be available on a 24-hour basis.  Scheduled computer services such as installation and replacement would take much longer.  There would also be cutbacks in meeting services:  meetings must be held as approved in the official calendar, without any additions.  

In response to a statement that the reductions in services were being introduced "as an act of spite" against the Fifth Committee and the delegations at large for the reductions in the programme budget, Mr. Connor said that the Fifth Committee had considered the paper prepared by the Secretary-General.  Following "a somewhat lengthy debate", it had not made any changes at the end of its resumed session on Monday.  One minor exception involved cutting the honorariums to members of such bodies as the International Narcotics Board and the Committee on the Elimination of Discrimination against Women, and with the resources thus freed, restoring Internet services to the Missions.

Was it possible to reach an agreement with "those responsible for financial decisions" in order to restore the services? a correspondent asked.  With summer coming, the buildings would feel very uncomfortable, as they already were on cold days.

Mr. Connor said that he did not like to make predictions for the future.  The Fifth Committee was reviewing the practicality of changes.  So far, it had made no suggestions in that regard.  The Controller's Office was looking at the Organization's cumulative expenditures month-by-month to see if some additions to cost-saving measures were needed, or if cutbacks were possible.

To a question regarding the source of funding for the envisioned $57-million security strengthening measures, he said that, to his knowledge, no provisions had been included in the budget for that purpose.

When would "the timely review" be conducted? a correspondent asked.  Mr. Connor replied that the plan was for monthly checks on the matter.  At this point, there were no conclusive results in that regard.

In response to a question about the capital master plan for renovating the United Nations buildings, he said that the second phase of the plan should be completed by the end of spring or the beginning of summer.  He hoped that Member States would be forthcoming in their suggestions in response to the Secretary-General's requests for financing options.  The work of the Secretariat was on time and on track.

Asked about the pattern of payment of dues by Member States and its effect on the cash situation of the United Nations, Mr. Connor said that the question related to major contributions being received "very, very late" in the year.  Last year, there had been a breakthrough with the United States completing its full year's current contribution.  That changed the whole picture, and he hoped that the positive pattern would continue. 

To a question about the Organization's current financial outlook, he replied that, so far, the flow of contributions had been "probably a little higher" than at a comparable period last year.  The pattern at the end of 2001 had been encouraging, and he hoped that it would continue. 

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